Earlier this week, Apple announced plans to stop using Imagination Technologies’ GPU designs, which have powered Apple products for quite some time. In the press release, Apple said it intended to continue using the Imagination technologies chips for two more years before ending its relationship with the company.
According to reports, Apple informed Imagination Technologies of its intention to switch to its own custom graphics architecture, which will allow the company to have more control of the technology.
The announcement by Apple caused Imagination Technologies stock to drop to its lowest level since 2009, due to concern by investors that the company’s revenues will be slashed in half once Apple stops using its technology.
In the statement, Apple said it has been working on its own graphics processing technology for a while, with the ultimate goal of replacing Imagination Technology chips in its products.
In a statement released shortly after Apple made the announcement, Imagination Technologies issued a statement of its own, saying the company did not accept Apple’s claims to have created its own GPU without infringing on Imagination Technologies own intellectual property.
Imagination Technologies said it requested Apple to provide evidence that the new GPU doesn’t infringe on their technology, but Apple refused to provide any evidence.
In the statement, Imagination Technology also stated that it reserves the right to obstruct any unauthorized use of its technology. The company also stated that it plans to address the issue some more in another announcement that will be made in the near future.
Despite both companies currently being at odds on Apple’s plan, it will be willing to let Apple use its technology as long as the company pays a licensing fee.
Apple representatives refused to comment on the statement made by Imagination Technologies.
While it looks like Imagination Technologies is willing to continue working with Apple, it appears Apple might not be willing to do the same because the company has refused to respond to Imagination Technologies claims, and has been known to like controlling the c ore technology inside products like the iPhone and iPad.
Some industry insiders believe Apple’s decision to stop using Imagination Technologies GPU in its products might be a negotiation ploy by Apple because Apple owns 8.5 percent of Imagination Technologies shares, and might be using the threat as a means to lower its licensing fees.
If Apple goes ahead with its plan to use its own GPU, the company will likely have another legal battle on its hands similar to that of Qualcomm, which the Federal Trade Commission accused of unfair and uncompetitive business practices.